
A company's capacity to create value depends on the risks it is willing to take at strategic and operational level and its ability to manage those risks effectively. Consequently, few aspects of corporate governance are currently more important than the ability to identify and manage risk promptly. The point here is not to eliminate all risk - because that would simultaneously eliminate all chance of reward. But board members do need to focus increasingly on ensuring that the risk management systems in place at their company not only work effectively but are also intelligently networked.

